INTERNATIONAL BUSINESS; British Airways Ousts Chief After Four Tumultuous Years

Robert J. Ayling, chief executive of British Airways P.L.C., was ousted today after four tumultuous years at the helm of Europe's largest airline. His departure came as expectations were growing that the formerly state-owned carrier would report losses for the first full year in its history as a private company.

Mr. Ayling, 54, who once said he would not leave the airline until he was at least 60, resigned at the request of the board, executives within the company said. British Airways shares, which had fallen 40 percent under Mr. Ayling's tenure to seven-year lows, initially surged on the news of his departure.

Under Mr. Ayling, British Airways had sought to increase profits by deliberately shrinking its share of the market, a radical strategy that has shown little sign of success.

British Airways insisted today that the split with Mr. Ayling was mutual, although executives within the company said Mr. Ayling was told by the board at the beginning of the week of his impending dismissal.

According to one person, Mr. Ayling, who had worked at the airline for 15 years, was surprised, but was amenable to leaving.

Mr. Ayling was unavailable for comment, but said in a statement, ''The past four years have been tough and stimulating and I am proud of the achievements of British Airways in that time.'' He added, ''Inevitably, the pressures have affected my family and I owe it to them to take some time off and spend it with them.''

Several people close to Mr. Ayling said he had grown tired, mentally and physically -- he suffered a prolonged case of the flu in January -- and he had been increasingly frustrated with the speed of the airline's rebound.

Shares of British Airways rose as much as 15 percent as word of Mr. Ayling's departure spread. The shares ended 2 percent higher at $:2.9925 or about $4.73.

Analysts said the timing of Mr. Ayling's departure was surprising. ''It clearly was unexpected,'' said Chris Avery, an aviation analyst at J. P. Morgan & Company in London. ''The question is: What is the catalyst for the move?''

Chris Tarry, an analyst at Commerzbank in London, said: ''It appears that the board has said enough is enough. He never had the support of the work force in the first place.''

Mr. Ayling's shaky relationship with British Airways employees was well known. In 1997, British Airways cabin crews went on strike, costing the airline $200 million. Mr. Ayling had refused to negotiate.

The public also disliked Mr. Ayling's idea of repainting the tails of British Airways planes with eye-catching international designs instead of the traditional graphics based on the Union Jack. That change was eventually scrapped.

Mr. Ayling introduced cost-cutting measures that have so far saved the company $1.6 billion. But in November, the airline reported a 38 percent drop in profit for the previous six month period, and there are widespread expectations that it will report a fiscal-year loss for the first time since it was privatized in 1987.

Under Mr. Ayling, British Airways made a bid that he personally negotiated to form an alliance with American Airlines that has run into a morass of regulatory problems. And most recently, he became the chairman of the New Millennium Experience Company, which runs the troubled Millennium Dome in Greenwich, England, which has become a nationwide embarrassment.

The dome, a $1.3 billion entertainment-shopping-restaurant complex that dominates the east London landscape, resembles a giant upside-down wok. It has been plagued with management problems and sluggish ticket sales since its Dec. 31 grand opening.

For now, Lord Marshall, the current chairman and former chief executive, will replace Mr. Ayling until a new chief executive is found. Lord Marshall said no immediate changes were planned.

''The board remains firmly committed to our present strategy,'' he said. ''This has been a very challenging period for the whole of the industry, which has faced fierce competition.''

It was not clear what Mr. Ayling intended to do next. Nor was it clear whether he had known of the increasing support for his dismissal within the board. But in an interview a few months ago, he gave no indication of anxiety about his job security, asserting: ''I shall leave when I'm 60. And not before.''